Some of you may remember a previous post from me about building a new home and the customers bank wanting some strange info. Well the homeowners have switched banks. This new bank is much better to deal with but they are not without some things I see as problems.
The thing that really bothers me is that they will not pay for any materials ordered or stored for the job and do not pay any money down, they only money they will release is for things already done and percent complete.
The bank told me the other day that the HO was solvent enough to pay my payments that are outlined in my contract and that when the bank inspects and writes a check to HO and myself that the HO would be reimbursed at that time. Well I met with the HO's yesterday and they tell me they are not in the position to pay the payment as outlined. I do not want to have to finance the job. It will be a nice money making job for us but not if I have to finance it.
I am working on a different payment plan to try and help them, they will have to come up with less money but I will be on the hook for more material than I would like to be.
Any insight greatly appreciated as always.
If it matters this is a 300k project. HO's already have done the following out of pocket on the property:
bought land, put in driveway, foundation is in and capped, decks are framed, well is in, septic is in and underground power is in. All of this work was paid for out of pocket. They are not looking to get any of that money back through their mortgage. All the money they are borrowing is going to finish the project.
As i said before, I haven't had to deal with banks in a very long time so I'm not up to speed with the norm.
thanks,
dave
The thing that really bothers me is that they will not pay for any materials ordered or stored for the job and do not pay any money down, they only money they will release is for things already done and percent complete.
The bank told me the other day that the HO was solvent enough to pay my payments that are outlined in my contract and that when the bank inspects and writes a check to HO and myself that the HO would be reimbursed at that time. Well I met with the HO's yesterday and they tell me they are not in the position to pay the payment as outlined. I do not want to have to finance the job. It will be a nice money making job for us but not if I have to finance it.
I am working on a different payment plan to try and help them, they will have to come up with less money but I will be on the hook for more material than I would like to be.
Any insight greatly appreciated as always.
If it matters this is a 300k project. HO's already have done the following out of pocket on the property:
bought land, put in driveway, foundation is in and capped, decks are framed, well is in, septic is in and underground power is in. All of this work was paid for out of pocket. They are not looking to get any of that money back through their mortgage. All the money they are borrowing is going to finish the project.
As i said before, I haven't had to deal with banks in a very long time so I'm not up to speed with the norm.
thanks,
dave